Hosted PBX vs. PBX On-Premises | Which You Should Choose?

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Inter and intra organization communications are a critical part of everyday business operations. The phone system is relatively quicker way of communication as compared to other forms like email, messages, and letters. Therefore, whatever the type and size of the organization may be a phone system is the need of every business. With the technological advancements, the phone systems have evolved from key telephone systems to modern hosted PBX based telephones that work over the internet.  Today, most common form of telephone systems are hosted PBX  IP PBX solution and non-hosted PBX systems. Whitehats has been providing services for both type of pbx solutions in dubai for a decade now. To make the choice of phone system easier for you, we have discussed its advantages and disadvantages of both systems here.

You may be interested in our earlier blog post “Why Prefer IP PBX over Traditional PBX”?

What is Hosted PBX Solution?

Hosted PBX is a VoIP system that is also known as Internet or IP based phone system where provider takes full responsibility to host the IP PBX system and look after the technological infrastructure required to run this system. In this system, phone sets are plugged into a router, while all the configurations and features are controlled through an IP PBX solutions server installed at provider’s location. Providers charge monthly fees for installation, operation, maintenance of VOIP PBX service.

Pros for Hosted PBX Solutions in dubai.

  • Implementation of new features is possible as service providers will have more resources, skills, and capabilities then users.
  • New configurations and the addition of features are all handled by service providers so you don’t have to worry about it.
  • Allocation and cancellation of virtual numbers are quick and easy.
  • Moving Phone system is very easy and quick as compared to traditional PBX. Just Plug your IP phone into a broadband connection and that is all you need.
  • No need to worry about patches and upgrades, all are handled by service providers.
  • Any catastrophic event will have no effect on the service as calls can be forwarded to voice mail or mobile phone.

At Whitehats, we offer a complete range of voice solutions in Dubai. Either you are looking for Hybrid PBX solutions, Hosted PBX solutions or Asterisk-based solutions, you can contact us for reliable solutions.

Cons for Hosted PBX Solutions in dubai.

  • The Hosted IP PBX solutions are based on internet connection, therefore once internet service is lost, your phone service is lost as well. However, you can adjust it up to receive voicemails and transfer calls to a mobile phone in all such situations.
  • Voice quality highly depends on your internet connection.
  • The system is not much flexible.
  • Monthly charges may change over time and you may have to pay for cancellation as well.
  • Depending on the service provider, the addition of features, customization may be unavailable slow as compared on premises PBX.
  • You will less control over your Phone system infrastructure to make any changes.

What is On-Premise PBX Solution?

On premised PBX is a pretty much similar to the traditional phone system that completely resides at your chosen location. Their main difference with hosted PBX system is that IP based routing is done through with the latest technology. All the calls are routed through company`s traditional phone system as well as over the internet through VOIP by using SIP trunking. Asterisk based systems are most commonly used and considered to be an affordable option for on-premise PBX setup.

Pros of On-Premise PBX Solutions in dubai.

  • With on Premise PBX, you get complete control over your phone system, so you can create and delete users as per your desires without asking service providers.
  • No license fees will be required to add new open sources features in case of asterisks based PBX phone system.
  • You will not need to switch/change carrier.
  • Calling costs can be saved through using VOIP trunks.
  • As you will own infrastructure, the costs of ownership will reduce over time.
  • No need to spend time on setting up on behalf of the users.
  • Most providers offer Professional staff training for new IP PBX system.

Cons for On-Premise PBX Solutions in dubai.             

  • On-Premises PBX have higher setup costs.
  • It will be difficult for you to identify maintenance costs over the long-term period.
  • As you expand your business and IP PBX, the complexity of setup will increase that you will have to manage.
  • You will have full control over every aspect of the system, so it’s all about your responsibility to get the full benefit from it.
  • You may need the help of technicians, and upgrades, maintenance, and patch-ups.
  • In some cases, your PBX manufacturer may go out of business, leaving problems regarding management of problems.

While considering the suitable PBX solution for your business, you should consider business requirements, features it offers, customization needs, scalability, after sales service and total cost of ownership before making a final decision.

At Whitehats, we can also combine your existing PBX system to the cloud functionalities into Hybrid PBX  system without much replacement and changes.


At Whitehats, we offer a complete range of voice solutions in Dubai. Either You are looking for Hybrid PBX solutions, Hosted PBX solutions or Asterisk-based solutions, you can contact us at +971 4 3382 500 for full assistance.

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